TPA tax advisor Peter Danovsky summoned the tax highlights of Slovakia 2019: Investors and enterpreneurs should know about the following tax changes.
1. Reduction of VAT rate on accommodation services to 10 %
The National Council of the Slovak Republic approved an amendment to the VAT Act, by which the VAT rate on accommodation services is reduced from the original 20 % to 10 %.
The reduced VAT rate applies to accommodation services with statistical classification of products by activity (CPA or code 55), which are further divided into:
- 55.1 Hotel and similar accommodation services
- 55.2 Camping sites and other short-stay accommodation services
- 55.3 Operation of camp sites and recreational vehicle and caravan parks
- 55.9 Other accommodation services
The amendment to the VAT Act is aimed at increasing demand for accommodation services in the territory of the Slovak Republic. The amendment comes into effect on January 1st, 2019.
2. Special levy for chain stores
A new legislation is also establishing the obligation to pay a special levy by chain businesses.
The new legislation applies to those chains that are operators of a food business and at least 25 % of their turnover comes from the sale of food to the final consumer and have establishments in at least 15 % of total districts under the same design, communication and marketing activities.
The rate of the levy is proposed at 2.5 % of the net turnover for the relevant levy period, which is generally deemed to be three consecutive calendar months.
3. e-Kasa (Electronic Cash Register)
The purpose of introducing the e – Kasa is that all entrepreneurs which are currently using the electronic or virtual cash register will have an online connection to the portal of Financial Administration of the Slovak Republic. The Financial Administration of the Slovak Republic will obtain immediate access to made transactions, to check the validity of cash vouchers in real time and thus prevent tax fraud and tax evasion and increase the inflow of funds into the State Budget.
All entrepreneurs who undertake business, receive cash or sell merchandise or provide services, aside from specific services defined by the legislation, will be obliged to start using electronic cash registers. The Act will come into effect on January 1st, 2019. The first stage commencing on April 1st, 2019 will affect entrepreneurs with the first-time obligation and those who decide voluntarily. The second stage commencing on July 1st, 2019 will impose the obligation to be connected into the e-Kasa system on all entrepreneurs nationwide.
